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- Bitcoin had been adopted by another significant institution in the Q1 2021
- Globant has added $5,00,000 worth BTC to its crypto portfolio
- The IT firm considers cryptos as intangible assets as such assets do not have a physical form
- Along with Globant, several other institutions are facing losses on their BTC purchases
Bitcoin has been adopted by several institutions and enterprises globally since last year MicroStrategy took the first dip. Recently, Globant, an IT firm building software products that emotionally connects its clients, has also added BTC to its portfolio. According to a filing with the United States Security and Exchanges Commission, the IT firm has purchased $5,00,000 worth BTC during Q1 2021. With the purchase, Globant has become the latest large firm to step into the BTC market.
Globant treats BTC as an intangible asset
A statement made by the US SEC on Monday revealed that Globant, which is an $8.6 billion worth IT firm, had purchased Bitcoins. After the addition of BTC, the IT firm listed its crypto incomes and expenses among the intangible assets. Alongside crypto investments, the firm had also added customer relationships, customer contracts, and other agreements in the firm’s possession.
Globant declares BTC as an intangible asset because it does not have any physical form. Moreover, the IT firm also mentioned that there is no limit to the emerging asset’s useful life. Following the facts, the firm also has decided that any gains made on the emerging asset class will not be recognized until they are sold.
Globant’s Bitcoin stash is at a loss
Globant has not revealed the purchase along with the cost-basis paid for the stash. Observing the time when the purchase was made, it seems that the Bitcoin portfolio of the firm would currently be facing losses. However, there are still many firms that are underwater with their acquisition of BTC. According to the data from the Bitcoin Treasuries, six public listed firms are facing loss since BTC retraced back.
Few significant firms are also down with their purchases of BTC due to the corrections in price. Last month, Nexon, a Japanese gaming giant firm, purchased $100 million worth BTC, and the acquisition is worth $67 million. Meitu, the firm also known as MicroStrategy of China, is also facing a plunge in its BTC portfolio’s value. BlackRock, a multinational investment firm, is also found with a loss of 33%.
